Consumers were focused on value in 2024 as inflation drove many shoppers to stretch their dollars, cut back on unnecessary purchases, and trade down to less expensive alternatives. Here's a look at emerging trends that could drive consumer behavior in 2025.
Bulk Buyers: Wholesale clubs like Costco Wholesale Corp. (NASDAQ:COST) and Sam's Club are gaining popularity as consumers are spending less time at traditional grocery stores. According to data from Placer.ai, the share of traditional grocery store visitors who also visited a Costco at least three times during the third quarter grew across chains.
The wholesale clubs are also benefitting from Millennials who have reached the family-rearing stage and are looking to purchase larger quantities at lower prices.
Restaurant Innovation: Placer.ai sees fast food and quick-serve restaurants leaning further into robotics to streamline service and lower costs in 2025.
Chipotle Mexican Grill, Inc. (NYSE:CMG) recently unveiled the "Autocado" avocado-peeling robot at a California location. The Autocado location is drawing 10% more visits than other locations in the same metro area and has reduced customer wait times with 43.9% of visits lasting less than 10 minutes.
McDonald's Corp. (NYSE:MCD) is also testing the waters with its first – almost – fully automated, takeaway-only restaurant in Texas where customers order at self-serve kiosks and orders are delivered by robots. Humans are still preparing the food, but the customer experience is interaction-free.
Small-Format Stores: Retailers are rethinking store formats as a smaller footprint can make stores more accessible, reduce costs and allow new locations in smaller growth markets.
Macy's, Inc. (NYSE:M) announced a turnaround plan in 2024 that includes a pivot towards smaller-format Macy's locations. Macy's also continues to expand its highly-curated, small-format Bloomie's concept, which features a mix of established and trendy pop-up brands tailored to local preferences.
The smaller, more accessible Macy's locations drew a higher share of weekday visitors and local customers than Macy's traditional stores in the third quarter of 2024, according to Placer.ai.
Dollar Dips: The new year may bring a slower rate of growth to discount and dollar stores like Dollar Tree, Inc. (NASDAQ:DLTR) and Dollar General Corp. (NYSE:DG).
Placer.ai's data shows the average number of visits to each discount and dollar store location remained essentially flat compared to 2023, while visits to superstores and grocery stores grew by 2.8% and 1%, respectively.
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